employment practices liability claims

Resolving Employee Litigation

Settling an employment law claim can cost a company thousands of dollars and consume valuable time. Besides the financial impact, a settlement can create low morale among other employees, scare away investors, and alarm potential clients. There are several ways you can address employee claims.

Maintain Resources

An employment practices liability claims insurance policy (EPLC) is one of the resources you will need when faced with a lawsuit. This a financial backing for the legal process or settlement that may arise from an employee dispute of your practices.

Understand Areas of Pursuit

Some of the things your employee may accuse you of won’t be covered an EPLC policy, but several of the primary areas of complaint are covered. These include:

Sexual harassment. It doesn’t matter who the charge is against, as the policy will be in effect whether the harassers are supervisors, senior managers, co-workers or contracted employees.
Wrongful termination. Research done by the Equal Employment Opportunity Commission shows that this is most widely claimed employment practice against an employer.
Discrimination. In light of legislation mandating equality, these employment practices liability claims include unfair treatment due to age, religion, race, disability, ethnicity, or sexual orientation.

Because of the potential for claims to be filed for breach of contract, negligence in evaluation, wrongful discipline, or even failure to promote, make sure you have a solid EPLC in place. Check with your broker for your current coverage limitations.